Investorideas.com – big ideas for global investors Search www.investorideas.com
   Member Access       Sign-up       Newsfeeds        Companies        Stock Directories       Research       Video       Funding   





Gold in the Starting Blocks

Ideas get bigger when you share them...

August 6, 2014 (Investorideas.com Mining stocks newswire) The gold miners' good performance in 2014 bodes well for gold not having to worry about a bear market taking place, like in 2013, or about testing again its major $1,178 bottom.

We are still witnessing massive accumulation of junior miners' shares since they touched a major bottom in December of 2013.

Investorideas.com Newswire

Clearly, the April 2013 breakdown zone for gold, silver and the miners will oppose great resistance to the bull market recovery. This is why I'm anticipating large cup-and-handle formations to cross those crucial zones to the upside. The enormous technical damages done in April, 2013, will necessitate time to be repaired, and I expect a breakout above those resistance zones only by the beginning of 2015. Until then the stock market will have reached a peak and will probably already be in an accelerating phase of its new bear market.

Investorideas.com Newswire

The technical cup-and-handle formation gives, as objective, the equivalent of the cup's depth, or the former high of around $1,900 for gold. For silver, the theoretical objective is around $38.

Investorideas.com Newswire

The current bull market in stocks is exerting a major resistance on the gold market, but nothing can justify such high valuations for stocks and several indicators are in the same territory as when major peaks were forming in 2000-2001 and 2007-2008. Technically, the triple bearish divergence that has shown up for several months constitutes, I think, a graphic confirmation of the formation of a major peak.

Investorideas.com Newswire

Much more than the daily economics news creating short-term volatility, the long-term fundamental trends will sustain the price of gold and keep its secular bull market, far from over, running. Gold's rise is irresistible in the great correction cycle of Kondratieff's Winter that started in 2000-2001.

No fundamental reason justified the panic selling on the gold market in 2013 and, as a consequence, the gold price is now reflecting out-of-this-world data, such as the end of the debt crisis in the Euro zone, an economic recovery in the United States with a strong dollar, a debt that is easy to sell, a manageable balance sheet for the Fed with a monetary mass that will stop growing to infinity and a world in peace. Financial markets want to believe all of that, and they have forced gold down to reflect it.

Join Investor Ideas Members to access the Renewable Energy stocks directory, water stocks, biotech stocks, defense stocks directories and the Insiders Corner

Whatever may be, we have now reached one of those disrupting periods where the unreal hopes and projections of the financial markets will clash with hard reality, as happened in 2000 and 2007. Periodically, with the help of Fed's interventions and interest rates set way too low, markets stray totally away from their equilibrium valuation, become a self-fulfilling prophecy to their highs, inflate out of proportion and end up confronting a pin. The nature of the needle doesn't matter... the bubble always ends up exploding.

Despite all the media blitz about gold's weakness in 2013 and its programmed decline toward $1,000, its price has established a solid base around $1,200 and is recuperating, sustained by gold's excellent fundamentals.

The price of gold is akin to a target-seeking missile head: It can be drawn to a decoy but, sooner or later, it will find its target and hit it. Its targets are called “global debt crisis”, “financial markets crisis” and “global monetary crisis”. Gold's target-seeking head KNOWS those crises will only grow bigger in time and that a meeting point between gold and the new monetary system is unavoidable, and this is why the gold price has gone up irresistibly since 2001.

No matter the evanescent economic recoveries, no matter the coming and going geopolitical events, no matter how much inflation goes up or down, the price of gold is all about the economy's fundamentals and gold is at the heart of the monetary and financial systems; and its target-seeking head has detected a fatal flaw and it will never let go. No matter the lies and the attacks against it, its price will end up following its initial trajectory. It is detecting a weakening dollar, rejected by more and more countries, tensions in reserves and restricted access to certain commodities, like oil, unmanageable sovereign debts, a corrupted financial system, central banks doing all they can to devaluate their own currencies by inflating the monetary mass to infinity, as well as demographics and social programs compounding all of those problems.

In the next crisis cycle of 2015-2021, the bull market in gold will enter its final phase and the gold price will reach heights that are unimaginable today. The mid-cycle correction of 2011-2013 that brought gold back around $1,200 will be seen as a small blip in the longest bull market in gold since it was delinked from the US dollar in 1971.

The best way to invest in gold: https://www.goldbroker.com/en

More Info:

This news is published on the Investorideas.com Newswire and its syndicated partner network

Publish Your News - Send a release
News now!

Get free news alerts: Sign up here

Published at the Investorideas.com Newswire - Big ideas for Global Investors

Disclaimer/ Disclosure:The Investorideas.com newswire is a third party publisher of news as well as creates original content as a news source. Original content created by investor ideas is protected by copyright laws other than syndication rights. Investorideas is a news source on Google news and global syndication partners. Our site does not make recommendations for purchases or sale of stocks or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated by featured companies, news submissions and advertising. Contact each company directly for press release questions. Disclosure is posted on each release if required but otherwise the news was not compensated for and is published for the sole interest of our readers.

More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp Disclosure: Investorideas is long shares of OEDV.

BC Residents and Investor Disclaimer: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: http://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.



Free News Alerts
Email:  





TOP

Investor Ideas © 2000 - 2014 InvestorIdeas.com®, ECON

Sign up here

login | logout | about us | contact | disclaimer / disclosure |
advertise | company profile directory | partners / links |
job search | privacy policy | trade | services | sitemap |